OPEN DAYS workshops 9 – 12 October 2006, Brussels Corporate Citizenship of local utilities in Germany Wolfgang Prangenberg Zelal Ates

OPEN DAYS workshops 9 – 12 October 2006, Brussels

Corporate Citizenship

of local utilities in Germany

Wolfgang Prangenberg

Zelal Ates

29.06.20062/13 Corporate Citizenship of local utilities in Germany

1. Local utilities play an active role in the local economic and social development

2. In spite of increasing competition, local utilities should be regarded by the owners as an active element of urban development policy

3. Social commitment of local utilities should be classified in this context: local utilities mainly perform economic duties but at the same time produce a social added-value


CSR-Commitment of local utilities

The relation of companies and society is in state of flux: The social and cultural infrastructure cannot continue to be state-financed to the same extent as it has been up to now; it will increasingly show gaps.

Schools, kindergartens, streets are often in a very bad condition; the equipment of the state-run education sector is very often not up to modern standard.

Local utilities witness these location problems due to their local proximity and knowledge. Because of their responsibility for the region and as a public company, local utilities provide assistance in manifold ways.

Everybody speaks about Corporate Social Responsibility (CSR) – local utilities put it into practice.

Local utilities are - as an economic factor on the ground - the economic “backbone” and - with their social commitment - also the “heart” of towns and cities; this is proven by the online survey of VKU.


Objective of the VKU Online Survey

To demonstrate vis-à-vis customers the social commitment of local utilities in their municipalities in times of increasing competition (e.g. gas and electricity sector)

To point out vis-à-vis governmental authorities: Everybody speaks about corporate responsibility – local utilities put it into practice

To record and communicate vis-à-vis the public that local utilities play an important social role in the municipalities - far beyond their role as technical providers


In which areas is your company involved? – Overview

Sponsoring: Clubs, Urban Culture, Sports

83,0%

72,6%

70,7%

67,1%

61,8%

60,0%

58,2%

56,4%

54,5%

51,8%

51,8%

non-profit associations

town fairs

sports clubs in general

team sports

local/regional charities

grammar schools

social child and youth welfare

primary schools

secondary schools

youth sports

venues


In which areas is your company involved? – Environmental protection

Environment: Good Feedback

43,9%

28,7%

23,2%

7,9%

15,2%

12,2%

environmental education

support of localenvironmentalassociations

provision of funds forenvironmental projects

allocation of employeesfor environmental projects

anti littering campaigns

other

n = 164


In which way does your company usually get involved ?

Money and Commitment

80,9%

72,2%

72,2%

12,3%

5,6%

4,9%

2,5%

69,8%

48,1%

11,1%

donation

regular long-term promotion

donation of real assets

one-time promotion

services

charitable trust

temporary release of employees for charity projects

temporary management assistance for needyorganisations

vocational training

other

n = 162


How far is the geographical scope of your social activities?

Clearly rooted in municipalities

94,9%

5,7%

1,3%

municipal/regional, in theclient area of the company

beyond the region

international

n = 158


Does your company foster co-operations in the field of corporate citizenship?

Co-operation is important

43,9%

43,3%

39,5%

7,6%

22,9%

33,1%

8,3%

3,2%

Yes, with other local utilities on-site

Yes, with youth social and culture offices in themunicipalities

Yes, with private companies on-site

Yes, with local/regional groups from the field ofpromotion

Yes, with other local utilities in other regions

Yes, with external consultants

Yes, with others

No

n = 157


Why does your company get involved in charity projects?

Sense of responsibility for the municipality

49,0%

73,2%

24,8%

7,6%

40,1%

15,9%

46,5%

37,6%

45,9%

26,8%

8,9%

31,2%

n = 157

We see advantages in CSR-projects in terms of image and reputation.

As a local utility we would like to fulfil our social responsibility on-site in a special way.

We see advantages in terms of marketing (e.g. brand enrichment by social features)

We see advantages in urban and regional development.

We see internal advantages in the development of our corporate culture.

We see economic advantages in social citizenship.

absolutely true

mostly true


44,9%

17,3%

18,4%

3,1%

2,0%

6,1%

8,2%

up to 25000

up to 50.000 €

up to 150.000 €

up to 350.000 €

up to 600.000 €

up to 1 Mill. €

more than 1 Mill. €

What was approximately the range of expenses for corporate

citizenship of your company in 2004? – voluntary commitment

Voluntary Engagement

n = 98


35,3%

22,4%

15,7%

7,3%

8,4%

10,9%

sports

culture

social welfare

education

environmentalprotection

other

How is the allocation of promotion of your company to the

respective areas (average percentage)?

Sports rank first

n = 121


Conclusion of the survey

Corporate Citizenship of local utilities is extensive and more than a mere public relations activity.

„Local utilities prove with their CSR-Commitment that they regard themselves as part of the region and want to stand out with these activities from private competitors.“

CSR-Projects are not sufficiently implemented into corporate concepts. Guidelines which can be used as decision criteria for a CSR-Engagement are missing

VKU has developed such a manual with best-practice-examples, including tips and hints concerning the appropriate corporate communication policy so that local utilities keep on being an example for Corporate Citizenship.

Documents

OPEN DAYS workshops 9 – 12 October 2006, Brussels Corporate Citizenship of local utilities in Germany Wolfgang Prangenberg Zelal Ates